B-223483, JUL 23, 1986, OFFICE OF GENERAL COUNSEL

B-223483: Jul 23, 1986

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(FPI) IS A GOVERNMENT CORPORATION OF THE DISTRICT OF COLUMBIA THAT PROVIDES TRAINING AND EMPLOYMENT FOR FEDERAL PRISONERS THROUGH THE SALE OF PRODUCTS AND SERVICES TO GOVERNMENT AGENCIES. AGENCIES ARE REQUIRED TO PURCHASE THEIR SUPPLIES FROM FPI. 8.603 AND 8.704 IS TO MAKE CLEAR THAT WHILE FPI IS A REQUIRED SOURCE FOR SUPPLIES. THE CHANGES ARE INTENDED TO BRING THE FAR INTO CONFORMITY WITH THE STATUTORY PROVISIONS DISCUSSED ABOVE. WE HAVE NO OBJECTIONS TO THE PROPOSED CHANGES.

B-223483, JUL 23, 1986, OFFICE OF GENERAL COUNSEL

FEDERAL ACQUISITION REGULATION - PROPOSED REVISION DIGEST: GAO HAS NO OBJECTION TO PROPOSED CHANGES TO SECTIONS 8.001, 8.602, 8.603, AND 8.704 OF THE FEDERAL ACQUISITION REGULATION CONCERNING ACQUISITIONS OF SERVICES FROM FEDERAL PRISON INDUSTRIES, INC.

MS. MARGARET A. WILLIS:

FAR SECRETARIAT

GENERAL SERVICES ADMINISTRATION

THIS RESPONDS TO YOUR LETTER OF JUNE 16, 1986, REQUESTING OUR COMMENTS ON A PROPOSAL TO AMEND FEDERAL ACQUISITION REGULATION (FAR) SECTIONS 8.001, 8.602, 8.603, AND 8.704 TO CLARIFY THE PRIORITY STATUS OF FEDERAL PRISON INDUSTRIES, INC., IN THE ACQUISITION OF SERVICES AND FOR OTHER PURPOSES.

FEDERAL PRISON INDUSTRIES, INC. (FPI) IS A GOVERNMENT CORPORATION OF THE DISTRICT OF COLUMBIA THAT PROVIDES TRAINING AND EMPLOYMENT FOR FEDERAL PRISONERS THROUGH THE SALE OF PRODUCTS AND SERVICES TO GOVERNMENT AGENCIES. UNDER 18 U.S.C. SEC. 4124 (1982), AGENCIES ARE REQUIRED TO PURCHASE THEIR SUPPLIES FROM FPI, IF AVAILABLE, AT PRICES NOT IN EXCESS OF MARKET PRICES. AS TO SERVICES, THE ATTORNEY GENERAL MAY, IN HIS DISCRETION, MAKE AVAILABLE TO THE AGENCIES THE SERVICES OF PRISONERS FOR PUBLIC WORKS PROJECTS AT AGREED UPON RATES. 18 U.S.C. SEC. 4125.

THE PRINCIPAL PURPOSE OF THE PROPOSED CHANGES TO FAR SECTIONS 8.001, 8.603 AND 8.704 IS TO MAKE CLEAR THAT WHILE FPI IS A REQUIRED SOURCE FOR SUPPLIES, FPI AND COMMERCIAL SERVICES SHARE THE SAME PRIORITY WITH RESPECT TO ACQUISITIONS OF SERVICES. THE CHANGES ARE INTENDED TO BRING THE FAR INTO CONFORMITY WITH THE STATUTORY PROVISIONS DISCUSSED ABOVE. THE PROPOSED CHANGE TO SECTION 8.602 CONCERNS POSSIBLE ADDITIONS OF ITEMS TO THE FPI SCHEDULE.

WE HAVE NO OBJECTIONS TO THE PROPOSED CHANGES.